The political economy of the green technology sector: A study about institutions, diffusion and efficiency

• Autores: Leo Wangler
• Localización: European journal of law and economics, ISSN 0929-1261, Vol. 33, Nº 1, 2012, págs. 51-81
• Idioma: inglés
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• Resumen

  • This paper discusses aspects related to the green technology sector (GT sector) in Germany. In a first step institutional reforms enabling diffusion of green technologies are analyzed. Cost arguments are also taken into account. In a second step a theoretical model developed by Tanguay et al. (Public Choice 120:1–27, 2004) is modified in order to evaluate the efficiency of the institutional setting in a political economy framework. The model is able to show that command and control policies (CCPs) are accompanied by cost-inefficiencies depending on the political weight of technology related interests groups. We further come to the result that relatively high marginal production costs may generate suboptimal high diffusion of a certain GT j. For relatively low marginal production costs policy induced demand may also be too low.